Compensation of the Management Board

The entire Supervisory Board is responsible for determining the compensation of the Management Board. The Supervisory Board is assisted in this task by a personnel committee. In the year under review, the personnel committee was composed of Dr. Gerd Krick, Dr. Karl Schneider and Wilhelm Sachs.

The objective of the compensation system is to enable the members of the Management Board to participate reasonably in the sustainable development of the Company’s business with the compensation paid and to reward them based on their duties and performance as well as their successes in managing the Company’s economic and the financial position while giving due regard to the peer environment.

The compensation of the Management Board is, as a whole, performance-oriented and was composed of three elements in the fiscal year 2009:

  • non-performance-related compensation (basic salary)
  • performance-related compensation (variable bonus)
  • components with long-term incentive effects (stock options)

In addition, three members of the Management Board had pension commitments in the reporting period.

The design of the individual components is based on the following criteria:

The non-performance-related compensation was paid in twelve monthly installments as basic salary in the fiscal year 2009. In addition, the members of the Management Board received additional benefits consisting mainly of insurance premiums, the private use of company cars, special payments such as rent supplements and reimbursement of certain other charges as well as contributions to pension and health insurance.

The performance-related compensation will also be granted for the fiscal year 2009 as a variable bonus. The amount of the bonus in each case generally depends on the achievement of the individual targets relating to the net income attributable to Fresenius SE and its segments. For the total performance-related compensation, the maximum achievable bonus is fixed.

For the fiscal years 2009 and 2008, the amount of cash payment of the Management Board of Fresenius SE consisted of the following:

  Non-performance-related compensation Performance-related
compensation
Cash compensation
(without long-term
incentive components)
  Salary 1 Other Bonus    
in thousand € 2009 2008 2009 2008 2009 2008 2009 2008
1 Includes insurance premiums, private use of company cars, contributions to pension and health insurance as well as other benefits.
2 Dr. Ben Lipps receives his compensation only from Fresenius Medical Care, of which Fresenius SE held 35.58 % of the total subscribed capital. As Dr. Ben Lipps is a member of the Management Board of Fresenius SE, his compensation has to be included in the compensation report of the Fresenius Group.
Dr. Ulf M. Schneider 800 800 56 39 1,032 1,165 1,888 2,004
Rainer Baule 425 425 41 40 800 900 1,266 1,365
Dr. Francesco De Meo 425 425 18 18 543 490 986 933
Dr. Jürgen Götz 325 325 28 29 424 360 777 714
Dr. Ben Lipps 2 860 816 251 202 1,200 963 2,311 1,981
Stephan Sturm 425 425 85 84 732 850 1,242 1,359
Dr. Ernst Wastler 375 375 27 17 473 390 875 782
Total 3,635 3,591 506 429 5,204 5,118 9,345 9,138

  Non-performance-related compensation Performance-related
compensation
Cash compensation
(without long-term
incentive components)
  Salary 1 Other Bonus    
in thousand € 2009 2008 2009 2008 2009 2008 2009 2008
1 Includes insurance premiums, private use of company cars, contributions to pension and health insurance as well as other benefits.
2 Dr. Ben Lipps receives his compensation only from Fresenius Medical Care, of which Fresenius SE held 35.58 % of the total subscribed capital. As Dr. Ben Lipps is a member of the Management Board of Fresenius SE, his compensation has to be included in the compensation report of the Fresenius Group.
Dr. Ulf M. Schneider 800 800 56 39 1,032 1,165 1,888 2,004
Rainer Baule 425 425 41 40 800 900 1,266 1,365
Dr. Francesco De Meo 425 425 18 18 543 490 986 933
Dr. Jürgen Götz 325 325 28 29 424 360 777 714
Dr. Ben Lipps 2 860 816 251 202 1,200 963 2,311 1,981
Stephan Sturm 425 425 85 84 732 850 1,242 1,359
Dr. Ernst Wastler 375 375 27 17 473 390 875 782
Total 3,635 3,591 506 429 5,204 5,118 9,345 9,138

In the fiscal year 2009, stock options based on the Fresenius SE Stock Option Plan 2008 and the Fresenius Medical Care AG & Co. KGaA Stock Option Plan 2006 were granted as components with long-term incentive effects. The principles of both plans are described in more detail in note 34 of the notes of the Fresenius Group, Stock options.

For the fiscal years 2009 and 2008, the number and value of stock options issued is shown in the following table:

Long-term incentive components


  Stock options 1
  Number Value in thousand €
  2009 2008 2009 2008
1 Stock options that were granted in 2009 and 2008 under the Fresenius SE stock option plan. Dr. Ben Lipps received stock options under the Fresenius Medical Care stock option plan.  
Dr. Ulf M. Schneider 51,600 51,600 425 815
Rainer Baule 25,800 25,800 213 408
Dr. Francesco De Meo 25,800 25,800 213 408
Dr. Jürgen Götz 25,800 25,800 213 408
Dr. Ben Lipps 99,600 99,600 761 976
Stephan Sturm 25,800 25,800 213 408
Dr. Ernst Wastler 25,800 25,800 213 408
Total 280,200 280,200 2,251 3,831

  Stock options 1
  Number Value in thousand €
  2009 2008 2009 2008
1 Stock options that were granted in 2009 and 2008 under the Fresenius SE stock option plan. Dr. Ben Lipps received stock options under the Fresenius Medical Care stock option plan.  
Dr. Ulf M. Schneider 51,600 51,600 425 815
Rainer Baule 25,800 25,800 213 408
Dr. Francesco De Meo 25,800 25,800 213 408
Dr. Jürgen Götz 25,800 25,800 213 408
Dr. Ben Lipps 99,600 99,600 761 976
Stephan Sturm 25,800 25,800 213 408
Dr. Ernst Wastler 25,800 25,800 213 408
Total 280,200 280,200 2,251 3,831

The stated values of the stock options granted to members of the Management Board in the fiscal year 2009 correspond to their fair value at the time of grant, namely a value of € 8.24 (2008: € 15.80) per stock option of Fresenius SE and € 7.64 (2008: € 9.80) per stock option of FMC-AG & Co. KGaA.

As the financial targets of the year 2009 were achieved, Dr. Ben Lipps is entitled to a stock-based compensation in an amount of € 341 thousand (2008: € 425 thousand). The entitlement is based on the development of the ordinary share of Fresenius Medical Care and has a three years vesting period. At the end of the fiscal year 2009, the members of the Management Board held a total of 901,500 (2008: 720,900) stock options and convertible bonds of Fresenius SE and 703,416 (2008: 818,411) stock options and convertible bonds of FMC-AG & Co. KGaA.

The development and the status of the stock options of the Management Board in the fiscal year 2009 are shown in the following table:

  Dr. Ulf M.
Schneider
Rainer
Baule
Dr. Francesco
De Meo
Dr. Jürgen
Götz
Dr. Ben
Lipps1
Stephan
Sturm
Dr. Ernst
Wastler
Total2
1 Dr. Ben Lipps holds stock options under the Fresenius Medical Care stock option plan. Only stock options and convertible bonds of Fresenius SE, excluding stock options of Dr. Ben Lipps.
2 Only stock options and convertible bonds of Fresenius SE, excluding stock options of Dr. Ben Lipps.
Options outstanding on January 1, 2009                
number 270,900 161,250 55,800 62,730 818,411 113,520 56,700 720,900
average exercise price in € 36.61 34.02 51.18 50.79 24.57 42.71 47.29 40.19
Options granted during fiscal year                
number 51,600 25,800 25,800 25,800 99,600 25,800 25,800 180,600
average exercise price in € 36.89 36.89 36.89 36.89 31.97 36.89 36.89 36.89
Options exercised during fiscal year                
number 0 0 0 0 214,595 0 0 0
average exercise price in €         15.32      
average stock price in €         28.50      
Options outstanding on December 31, 2009                
number 322,500 187,050 81,600 88,530 703,416 139,320 82,500 901,500
average exercise price in € 36.65 34.42 46.66 46.74 28.44 41.63 44.04 39.53
average remaining life in years 5.7 5.2 6.4 6.4 4.2 6.2 6.2 5.9
range of exercise prices in € 13.59
to 57.27
13.59
to 57.27
36.89
to 57.27
29.92
to 57.27
14.47
to 35.49
29.92
to 57.27
21.33
to 57.27
13.59
to 57.27
Exercisable options on December 31, 2009                
number 175,438 113,516 14,996 19,310 404,616 65,786 20,396 409,442
average exercise price in € 27.81 26.14 46.41 43.71 24.48 35.41 37.01 30.46

  Dr. Ulf M.
Schneider
Rainer
Baule
Dr. Francesco
De Meo
Dr. Jürgen
Götz
Dr. Ben
Lipps1
Stephan
Sturm
Dr. Ernst
Wastler
Total2
1 Dr. Ben Lipps holds stock options under the Fresenius Medical Care stock option plan. Only stock options and convertible bonds of Fresenius SE, excluding stock options of Dr. Ben Lipps.
2 Only stock options and convertible bonds of Fresenius SE, excluding stock options of Dr. Ben Lipps.
Options outstanding on January 1, 2009                
number 270,900 161,250 55,800 62,730 818,411 113,520 56,700 720,900
average exercise price in € 36.61 34.02 51.18 50.79 24.57 42.71 47.29 40.19
Options granted during fiscal year                
number 51,600 25,800 25,800 25,800 99,600 25,800 25,800 180,600
average exercise price in € 36.89 36.89 36.89 36.89 31.97 36.89 36.89 36.89
Options exercised during fiscal year                
number 0 0 0 0 214,595 0 0 0
average exercise price in €         15.32      
average stock price in €         28.50      
Options outstanding on December 31, 2009                
number 322,500 187,050 81,600 88,530 703,416 139,320 82,500 901,500
average exercise price in € 36.65 34.42 46.66 46.74 28.44 41.63 44.04 39.53
average remaining life in years 5.7 5.2 6.4 6.4 4.2 6.2 6.2 5.9
range of exercise prices in € 13.59
to 57.27
13.59
to 57.27
36.89
to 57.27
29.92
to 57.27
14.47
to 35.49
29.92
to 57.27
21.33
to 57.27
13.59
to 57.27
Exercisable options on December 31, 2009                
number 175,438 113,516 14,996 19,310 404,616 65,786 20,396 409,442
average exercise price in € 27.81 26.14 46.41 43.71 24.48 35.41 37.01 30.46

The following table shows the total compensation for the years 2009 and 2008:

  Cash compensation
(without long-term
incentive components)
Long-term
incentive components
Total compensation
(including long-term incen-
tive components)
in thousand € 2009 2008 2009 2008 2009 2008
Dr. Ulf M. Schneider 1,888 2,004 425 815 2,313 2,819
Rainer Baule 1,266 1,365 213 408 1,479 1,773
Dr. Francesco De Meo 986 933 213 408 1,199 1,341
Dr. Jürgen Götz 777 714 213 408 990 1,122
Dr. Ben Lipps 2,311 1,981 1,102 1,401 3,413 3,382
Stephan Sturm 1,242 1,359 213 408 1,455 1,767
Dr. Ernst Wastler 875 782 213 408 1,088 1,190
Total 9,345 9,138 2,592 4,256 11,937 13,394

  Cash compensation
(without long-term
incentive components)
Long-term
incentive components
Total compensation
(including long-term incen-
tive components)
in thousand € 2009 2008 2009 2008 2009 2008
Dr. Ulf M. Schneider 1,888 2,004 425 815 2,313 2,819
Rainer Baule 1,266 1,365 213 408 1,479 1,773
Dr. Francesco De Meo 986 933 213 408 1,199 1,341
Dr. Jürgen Götz 777 714 213 408 990 1,122
Dr. Ben Lipps 2,311 1,981 1,102 1,401 3,413 3,382
Stephan Sturm 1,242 1,359 213 408 1,455 1,767
Dr. Ernst Wastler 875 782 213 408 1,088 1,190
Total 9,345 9,138 2,592 4,256 11,937 13,394

The components with long-term incentive effect can be exercised only after the expiry of the specified vesting period. Their value is recognized over the vesting period as expense in the respective fiscal year. The expenses attributable to the fiscal years 2009 and 2008 are stated in the following table.

  Expenses for long-term
incentive components
in thousand € 2009 2008
Dr. Ulf M. Schneider 694 714
Rainer Baule 347 357
Dr. Francesco De Meo 171 68
Dr. Jürgen Götz 289 219
Dr. Ben Lipps 1,857 1,348
Stephan Sturm 357 383
Dr. Ernst Wastler 171 68
Total 3,886 3,157

  Expenses for long-term
incentive components
in thousand € 2009 2008
Dr. Ulf M. Schneider 694 714
Rainer Baule 347 357
Dr. Francesco De Meo 171 68
Dr. Jürgen Götz 289 219
Dr. Ben Lipps 1,857 1,348
Stephan Sturm 357 383
Dr. Ernst Wastler 171 68
Total 3,886 3,157

The non-performance-related compensation components and the basic structures of the performance-related compensation components are agreed in the service agreements with the individual Management Board members. The stock options are granted on an annual basis by the Supervisory Board to the Management Board.

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